The 2025 report titled “The APAC State of Open Banking and Open Finance”, jointly developed by the Cambridge Centre for Alternative Finance (CCAF) and the Asian Development Bank Institute (ADBI), offers a detailed and comprehensive assessment of how Open Banking and Open Finance (OBOF) are evolving across the Asia-Pacific (APAC) region. Building upon insights from the global Open Banking and Open Finance report, this study focuses on 16 diverse jurisdictions within APAC to understand the pace, challenges, and enabling factors shaping the implementation of data-sharing financial frameworks. It is based on in-depth qualitative interviews with regulators, fintech companies, and ecosystem players, as well as desk-based research.
Regional Context and Policy Drivers
Open Banking and Open Finance are rapidly transforming how financial services are delivered, shifting control over financial data to consumers and enabling third-party providers to create more affordable, efficient, and inclusive services. In APAC, the adoption of these frameworks is seen as a strategic tool to enhance financial inclusion, foster competition, encourage innovation, and modernize the digital financial infrastructure.
The APAC region exhibits a rich diversity of regulatory philosophies, market conditions, and levels of digital readiness. While globally most jurisdictions follow regulation-led models (e.g., Europe and the Middle East), APAC leans toward market-driven and guided implementation approaches. This trend is most visible in economies such as Singapore, Hong Kong, China, and Malaysia, where competitive banking markets encourage voluntary or industry-led innovation rather than heavy-handed regulation.
Policy objectives vary significantly across the region. Regulation-led jurisdictions such as India and Indonesia prioritize financial inclusion, aiming to serve large unbanked populations by expanding digital access to financial products. Meanwhile, countries like Australia, South Korea, New Zealand, and Thailand focus on improving competition in their relatively mature but concentrated financial markets. Notably, Australia’s Consumer Data Right (CDR) initiative stands out as one of the most advanced and comprehensive implementations globally.
Governance Frameworks and Implementation Models
The report introduces a five-tier governance classification ranging from fully regulation-led to voluntary market-driven approaches:
- Mandated & Standardised Data Sharing – e.g., Australia, South Korea
- Mandated Data Sharing – currently not adopted in APAC
- Standardised Data Sharing – e.g., India, Indonesia
- Guided Implementation – e.g., Hong Kong, Singapore, Japan, Philippines
- Voluntary – e.g., People’s Republic of China, Sri Lanka
Jurisdictions often shift along this continuum. For example, Thailand and New Zealand initially embraced market-driven models but are now developing regulation-led frameworks in response to slower market uptake and interoperability issues. This dynamic shift reflects growing recognition of the limitations of voluntary participation, especially in contexts where incumbent banks have little incentive to open their data.
Adoption Trends and Jurisdictional Progress
Of the 16 jurisdictions analyzed, 14 had reached stages of implementation that allowed in-depth evaluation. Pakistan and Viet Nam were excluded from detailed analysis due to their early-stage development. Eight jurisdictions (50%) have adopted or are transitioning to regulatory frameworks for Open Finance, placing APAC ahead of other regions in this domain.
Data-sharing maturity is assessed based on how many financial sectors (e.g., payments, lending, insurance, pensions) are integrated into the framework and whether APIs are in live use. On average, regulation-led jurisdictions in APAC score 4 out of 6 on this metric, compared to the global average of 2.9. New Zealand and Korea lead with scores of 5. Market-driven jurisdictions also outperform global peers, averaging 3.1 (vs. a global average of 1.96), but with more variation across sectors and service types.
Despite this progress, Open Finance adoption still lags behind Open Banking. Expansion into verticals such as insurance, investments, and pensions is still rare. Only 2 of 8 market-driven and 3 of 6 regulation-led APAC jurisdictions have successfully implemented Open Finance beyond banking. These figures suggest that both governance models face significant challenges in scaling Open Finance ecosystems.
Key Enablers and Challenges
The study emphasizes the role of Digital Public Infrastructure (DPI)—which includes digital identity systems, payment rails, and consent frameworks—as a critical enabler of Open Banking. Jurisdictions with strong DPI foundations, like India (via Aadhaar and India Stack) and Thailand (with PromptPay and NDID), are better positioned to implement secure and inclusive financial data sharing.
Technology and interoperability standards are another essential element. The use of secure APIs, common authentication protocols (like OAuth 2.0), and consumer protection measures are crucial for building trust in OBOF systems. Australia’s Data Standards Body and India’s Account Aggregator framework exemplify the importance of standardization in driving scalable ecosystems.
However, the report also identifies trust and regulatory coordination as persistent barriers. In multi-regulator environments (e.g., Indonesia and Thailand), overlapping mandates can lead to delays or conflicting requirements. In voluntary models, the absence of enforceable standards can deter smaller players from participating, limiting innovation and competition.
Interviewed stakeholders expressed concerns about the slow momentum in market-driven jurisdictions, particularly where regulatory incentives are weak or where incumbent banks resist data sharing. Some industry players supported market-driven models for their flexibility and responsiveness to innovation but acknowledged that without regulatory pressure, large-scale adoption remains difficult.
In-Depth Case Studies
Nine jurisdictions were selected for case studies to offer detailed insight into implementation experiences: Australia, Hong Kong, Indonesia, Japan, New Zealand, Pakistan, the Philippines, Singapore, and Thailand. These represent a cross-section of economies with different development levels, digital maturity, and governance approaches. The case studies explore institutional roles, data-sharing infrastructure, industry readiness, and future roadmaps. Interviews with fintechs, banks, regulators, and industry bodies highlighted both local challenges and scalable innovations.
For instance:
- Australia has a mature, government-led CDR regime that extends beyond finance to energy and telecoms.
- India leverages DPI for inclusion, though challenges remain in account usage and ecosystem adoption.
- Indonesia has developed a robust legal framework and instant payments but faces gaps in digital readiness.
- Thailand is actively building a formal regulatory framework to replace its earlier market-driven model.
Conclusions and Recommendations
The APAC region is rapidly evolving into a global leader in Open Banking and Open Finance innovation. While diverse in approach, its jurisdictions share a commitment to improving financial ecosystems through data empowerment. The region’s leadership in Open Finance regulation (57% of all global Open Finance rules were issued by APAC jurisdictions) signals a willingness to expand beyond traditional banking and experiment with more inclusive digital models.
However, the report concludes that a hybrid approach—balancing market dynamism with regulatory safeguards—may offer the most sustainable model. Policymakers are encouraged to:
- Invest in digital public infrastructure, especially in emerging markets
- Foster regional interoperability to support cross-border data flows
- Develop inclusive governance frameworks that address competition, customer protection, and access
- Encourage public-private collaboration to align innovation with policy goals
Ultimately, the report is a foundational resource for regulators, financial institutions, development partners, and ecosystem players seeking to navigate the complex but promising landscape of Open Banking and Open Finance in APAC. Its insights serve as a blueprint for building inclusive, secure, and interoperable financial systems in the digital age.
Summary by DigitalTrade4.EU